Broken Arrow City Council
Meeting of: 10-03-23
Title:
title
Consideration, discussion, and possible approval of and authorization to execute an Economic Development Agreement by and among Sunset at Broken Arrow, LLC, and the Broken Arrow Economic Development Authority and the City of Broken Arrow
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Background:
The goal of the Broken Arrow Economic Development Authority is to create an environment that encourages and facilitates economic development within and near the City by attracting new retail and commercial businesses to the Broken Arrow area, and to promote the economic health and expansion of existing industry and commercial businesses within the City.
The City of Broken Arrow has an approximate 124 acres events park immediately north and east of the intersection of the Creek Turnpike and East 101st Street South. The Master Plan for the Events Park devised back in May 2011, proposed an Outdoor Amphitheater as a key feature for the Events Park. The Authority has under consideration the acquisition of an additional 41 acres North of the Events Park for a proposed Project Site for an Outdoor Amphitheater to be developed by Sunset at Broken Arrow LLC.
The Outdoor Amphitheater proposal by Sunset at Broken Arrow, LLC includes the construction of a venue with seating and attendance capacity of 12,500. The outdoor entertainment venture projects approximately $71.5 million capital investment, supporting approximately 741 jobs during the construction period, and upon completion, providing approximately 86 direct full-time positions with an annual payroll of approximately $3.49 million, and supporting an additional 154 indirect jobs with an annual payroll of approximately $4.01 million. The projected capital investment is expected to generate over $900,000 in new annual ad valorem taxes, benefiting taxing entities including Wagoner County, the Wagoner County Health Department, Broken Arrow Independent School District No. 3 of, Tulsa County (Broken Arrow Public Schools), Tulsa Technology Center Vo-Tech District No. 18, and the City. The Project further contemplates the generation of approximately $85.5 million in annual taxable sales.
Under the terms of the attached Economic Development, the Authority will seek to acquire 41 acres of property immediately North of the Events Park. A portion of that land will be sold to Sunset at Broken Arrow, LLC for a price not to exceed $38,462 per acre. Sunset at Broken Arrow will have the option to purchase additional acreage at a cost of $38,462 per acre.
Obligations of the Authority and City for the project include:
A. The Authority shall acquire the Project Site.
B. The City will accept Developer’s submission of a PUD covering the Sunset Amphitheater. Said PUD shall be developed in coordination with the Developer’s proposed site plan for the Project.
C. The Authority agrees to sell to the Developer approximately thirteen (13) acres within the Project Site for the price of $38,462.00 per acre. In the event that the Developer determines during the process of planning the project that additional land is needed, the Authority will sell up to seven (7) additional acres (for a total of twenty (20) acres) to the Developer at the price of $38,462.00 per acre.
D. The Authority and the City agree to undertake all necessary steps to obtain appropriate zoning and land use approvals for the Project Site Improvements.
E. The Authority agrees to cause the completion of the Project Site Improvements, as described herein. The parties understand, acknowledge and agree that the Authority shall be solely responsible for constructing and completing or causing the construction or completion of the Project Site Improvements.
F. The Authority shall cause to be available a minimum 3,360 parking spaces for use by the Developer. The Authority shall cause to be constructed 2,360 parking spaces, to be located within the Project Site, or within the Events Park, said location to be determined at the discretion of the Authority. The Authority shall lease an additional 1,000 parking spaces from Northeastern State University - Broken Arrow Campus pursuant to an agreement that shall provide renewal terms sufficient to provide adequate notice of non-renewal such that the Authority can construct additional surface parking spaces to provide the minimum requirement at all times in which events are being conducted at the Sunset Amphitheater provided, however, that the Authority may provide temporary parking for a period of up to twelve (12) consecutive months in lieu of permanent parking while permanent parking is being constructed to replace the parking spaces being leased from Northeastern State University - Broken Arrow. The Authority and/or the City may enter into one or more Parking Space Use Agreement(s) with the Developer and/or its contract vendors.
The Authority shall cause to be installed the following Project Site Improvements to include the following (including preliminary estimated project costs):
A. On-site surface parking improvements providing a minimum 2,360 spaces, at an estimated cost of $7,184,834;
B. Stormwater detention facilities at an estimated cost of $2,273,400;
C. Road improvements within the Events Park at an estimated cost of $2,485,187;
D. Subject to acquisition of the 41 acres, roadway extension to north end of Project Site at an estimated cost of $2,120,616;
E. Roadway extension providing connecting access to State Highway 51 at East Washington Street, including railroad crossing improvements, subject to the approval of Union Pacific Railroad, at an estimated cost of $3,500,000;
F. Construct third access point across creek to connect Project Site with Challenger Sports Complex at an estimated cost of $250,000.
In exchange, Sunset at Broken Arrow, LLC has agreed to develop and construct the Sunset Amphitheater facilities on property acquired from the Authority within the Project Site, with a minimum capital investment of $70 million. Construction is to be completed by December 31st, 2025. Beginning on the 366th day after the full completion of construction, Sunset shall operate or cause to be operated the Sunset Amphitheater facilities with a minimum of forty-five (45) scheduled events each calendar year
Cost: $17,860,000
Funding Source: TIF #5
Requested By: Jennifer Rush, Economic Development Manager
Approved By: City Manager’s Office
Attachments: Economic Development Agreement
Recommendation:
recommend
Approve and authorize execution of an Economic Development Agreement by and among Sunset at Broken Arrow, LLC, and the Broken Arrow Economic Development Authority and the City of Broken Arrow
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